Asked by Samantha Heard on May 02, 2024
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Capital market efficiency is attributable largely to the lack of competition among market participants for information.
Capital Market Efficiency
Capital Market Efficiency is a theory that suggests markets are efficient in processing information, and thus, security prices at any time fully reflect all available information.
Competition
The rivalry among businesses or within markets for customers, which can influence prices, product quality, and innovations.
Market Participants
Entities or individuals involved in trading or investing in financial markets, including buyers, sellers, and intermediaries.
- Comprehend the functions of information distribution and rivalrous behavior in securing market effectiveness.
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Learning Objectives
- Comprehend the functions of information distribution and rivalrous behavior in securing market effectiveness.
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